Extinguishment of delisted shares

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If your shares in a delisted company like Kwality Ltd have been extinguished from your account without your consent or any compensation, it's understandable to be concerned. While delisting can occur, especially after acquisitions like Sarda Mines' purchase of Kwality Limited, investors should typically be informed. You may have options to negotiate directly with the promoters for a buyback, especially if the delisting was over a year ago.

Amit Singhi

Amit Singhi (Querist)
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22 May 2023 Hello I had shares of kwality Ltd, a company that got delisted, the shares of the company were extinguished from my account without my consent and without me getting any extinguishment/buyback compensation for the same. Is it normal

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 May 2023 If the company has been delisted for over a year, the shareholder can approach the company and enter into a private negotiation to sell the shares back to the promoters. This will be an off-market transaction and the price will be determined between the buyer and seller.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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22 May 2023 Sarda Mines Private Limited completed the acquisition of Kwality Limited (BSE:531882) on January 25, 2022.

Amit Singhi

Amit Singhi (Querist)
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22 May 2023 So if the acquisition by sarda mines is complete, does it mean the automatic extinguishment of shares. Even in such scenarios arent the investor made aware of it by a mail or any form of correspondence

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